Economic Policies under the Nazi Regime: Nationalistic State Capitalism
The economic policies of Nazi Germany, often referred to as the Third Reich, were distinct from both traditional capitalism and socialism. These policies were characterized by a form of Nationalistic State Capitalism, which aimed to serve the national interest through state control of essential industries and a focus on the advantages of a wealthy elite.
Capitalism Serving the National Interest
Contrary to the capitalist elites in the United States, who are primarily internationalists and serve their own financial interests, Nazi Germany's industrialists and factory owners were members of the Nazi Party. They actively participated in party politics as office holders. This participation was not about passivity but about direct involvement in shaping economic and political policies that benefitted both the nation and themselves. Unlike America, where corporate financial oligarchs fund politicians who legislate reforms favoring their interests, Nazi Germany was a Nationalistic war machine based on state capitalism.
Government Control and Infrastructure
The government of Nazi Germany controlled all essential industries, not through nationalization but through tough laws that enforced compliance. This control extended to ensuring full employment by building extensive infrastructure and military power. Additionally, the regime ignored the payment of World War I war reparations, which were seen as a continuation of old-fashioned imperialist plundering to pay off national debt.
The Term 'Third Reich' and Economic Systems
The confusion around the term 'Third Reich' often stems from unclear definitions of economic systems. It is easier to describe what it wasn’t than what it was. It was not socialism, as the government did not nationalize all large industries or seize the properties of large individuals or groups to establish a state-guided economy. Socialism, as advocated by its critics, aims to eliminate such disparities.
It was also not free-market capitalism as defined by its proponents, as the government played a significant role beyond merely enforcing private property rights. The government funded infrastructure projects that built home wealth and then initiated military invasions to pay off national debt. The regime lasted only six years before World War II, making its long-term economic implications difficult to assess.
Causes of the Horrors of the Third Reich
It is crucial to address the question of what caused the horrors of the Third Reich. Economic systems alone cannot be blamed for the atrocities committed. The Third Reich was not caused by its economic policies, but by the actions of criminally nasty people who seized control of powerful and dangerous nations. The fundamental causes lay in human nature and the abuse of power rather than the economic mechanisms in place.
Conclusion
The economic policies of Nazi Germany were shaped by a desire to serve the national interest and support a wealthy elite. While it differs significantly from both traditional capitalism and socialism, it was grounded in a form of state capitalism that prioritized national strength and the interests of the few at the expense of the many.